Weekly Recap: Pink's Bottom Line on Media, Money and Sports
Top items and takeaways from this week's newsletter
Here are the top items and takeaways from this week’s newsletter.
MEDIA
The nation’s movie theaters and cinemas took in about 16% more revenue at the box office last weekend compared to the prior weekend, according to data from Box Office Mojo. Theaters and cinemas grossed more than $75 million this weekend, led by the debut of the movie Free Guy, according to Box Office Mojo. That stronger performance at the box office is notable considering the impact and spread of the Delta variant, which could be hindering attendance at theaters.
The country’s biggest pay-television providers lost suffered more subscriber losses in the second quarter of the year, according to data from the Leichtman Research Group, a media research firm. According to Leichtman, the top pay-tv providers lost a combined total of 1.23 million subscribers last quarter — for the past year, subscriber losses totaled 4.52 million. All of the top cable and satellite providers lost subscribers last quarter while Internet delivered pay-tv services actually showed a slight net increase in subscribers for the quarter. Still, the overall data is further evidence that traditional, linear pay-tv is struggling at the same time that video streaming is surging in popularity.
Broadcast television accounted for a greater percentage of total television viewership in July than it did in August, according to Nielsen’s Gauge, a monthly look at how viewers are consuming video whether it’s on broadcast television, cable tv, a video streaming service or elsewhere. According to Gauge, broadcast television accounted for 24% of overall television viewing in July compared to 23% in June. Cable television, meanwhile, accounted for 38% of total television viewing in July, compared to 40% in June. Video streaming accounted for 28% of total television viewing in July compared to 27% in June — the second consecutive month that video streaming has shown a month-over-month percentage increase. As such, the data from Gauge indicates that video streaming’s popularity continues to grow, and in July, it appears it was likely at the expense of cable television.
MONEY
Not surprisingly, the percentage of Americans who buy their groceries online increased sharply in the past two years. According to a Gallup Consumption Habits Survey conducted in July, 23% of grocery shoppers in the United States order online at least once a month compared to just 11% two years ago. Notably, according to that survey, households with young families with annual incomes greater than $100,000 and younger households in general are the most likely to buy their groceries online. However, overall, more Americans still do their shopping in person at traditional stores. Still, the survey does point to a major shift in grocery buying patterns — and it looks like a durable trend as younger consumers are leading the way when it comes to buying groceries online.
Retail sales slumped 1.1% last month compared to June, according to a government report released earlier this week. That follows a revised increase of 0.7% in retail sales for June compared to May, according to that government data. The overall decline in retail sales in July also signals that the Delta variant could be putting a damper on consumer sentiment. As consumer spending accounts for roughly two-thirds of all economic activity in the United States, a decline in retail sales has widespread implications for the strength of the overall economic recovery.
US housing starts slumped 7% in July compared to June, according to data released by the government earlier today. That decline in housing starts likely reflects a trend in the overall housing market at the moment — namely, that there are significant supply constraints to build those new homes despite significant demand. Expect those supply constraints for at least the rest of the year, which could exacerbate the current overall shortage of housing available in the market.
SPORTS
Men’s tennis legend Roger Federer said last Sunday that due to a knee injury and surgery that he will “be out of the game for many months.” That means there’s also a chance that it could spell the end of Federer’s extraordinary career — he is currently tied for the most men’s major titles in history with Rafael Nadal and Novak Djokovic. While it is now likely that both Nadal and Djokovic will pass Federer for most career major titles, Federer’s popularity and influence will remain unmatched.
Alabama has once again claimed the top spot in the AP Top 25 preseason college football rankings. Oklahoma is ranked second followed by Clemson and Ohio State, ranked third and fourth, respectively. Those four schools — along with other teams from the SEC — have dominated college football since the College Football Playoff began seven years ago. However, this year, a new team — Iowa State — looks like it just might crash the party and emerge as a legitimate contender for the national title.
Don’t look now, but the New York Yankees are making a push to make baseball’s postseason and they are in a good position to claim one of the two American League Wildcard spots. That said, the Yankees are just the seventh favorite in all of baseball to win the World Series, according to FanDuel Sportsbook. Overall, though, I like the Yankees to challenge the Chicago White Sox for the American League pennant.
Jeremy Pink is currently COO of Geniecast, a leading virtual content and experience company. He is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore.
The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.
(Newsletter Editor: Karina Pink)